The Department for Work and Pensions (DWP) failed to adequately communicate changes to women’s state pension age and women affected are owed compensation, the Parliamentary and Health Service Ombudsman (PHSO) has said.

Its investigation found that thousands of women may have been affected by DWP’s failure to adequately inform them that the state pension age had changed.

Women born in the 1950s were told they would have to wait longer for their state pension when changes to the state pension age to equalise it across genders were accelerated in 2010.

A campaign group called WASPI (Women Against State Pension Inequality) was set up as a result of the state pension age for women shifting from 60 to 65.

In addition to paying compensation, the ombudsman made it clear that the Department for Work and Pensions should acknowledge its failings and apologise for the impact it has had on complainants and others similarly affected.

Parliamentary and Health Service Ombudsman chief executive Rebecca Hilsenrath, said:  "The UK’s national ombudsman has made a finding of failings by DWP in this case, and has ruled that the women affected are owed compensation.

“DWP has clearly indicated that it will refuse to comply. This is unacceptable. The department must do the right thing and it must be held to account for failure to do so.

“Complainants should not have to wait and see whether DWP will take action to rectify its failings.

“Given the significant concerns we have that it will fail to act on our findings, and given the need to make things right for the affected women as soon as possible, we have proactively asked Parliament to intervene and hold the department to account.

“Parliament now needs to act swiftly, and make sure a compensation scheme is established. We think this will provide women with the quickest route to remedy.”

Pensioners set for £900 increase

Pensioners will see their state pension increase by up to £900 next month, as an announcement made at last year’s autumn statement comes into effect.

Chancellor Jeremy Hunt confirmed that the triple lock on pensions would be honoured, with state pensions set to rise from April 1.

Under the triple lock – which guarantees an increase in line with average earnings, inflation or 2.5%, whichever is highest - pensions will increase by 8.5 per cent next month.

He told MPs: "The triple lock has helped lift 250,000 older people out of poverty since its inception in 2011.

"It has been a lifeline for many during times of inflation.

"We honour our commitment to the triple lock in full. We will increase the new state pension by 8.5 per cent, worth up to £900 more a year."